This article is from cointelegraph.com.br and the original article can be read here in Portuguese
Financial products linked to cryptocurrencies moved BRL 5.1 billion through 42,000 contracts registered with B3 in the 1st quarter of 2022, according to data released by the Exchange itself in its quarterly balance sheet. Individual investors accounted for 90% of this total.
ETFs (index funds) were the preferred instrument for investors to seek exposure to cryptocurrencies on B3, accounting for 96% of registered contracts. The most popular ETF among Brazilian investors in the first quarter was HASH11, from asset manager Hashdex.
HASH11 reflects the Nasdaq Crypto Index, an index developed by Hashdex in partnership with the US technology sector exchange, which seeks to globally reflect the movement of the crypto market through diversified exposure to a varied basket of high-cap digital assets. .
One year after its launch, HASH11 is today the second most traded ETF on B3, with 149,438 shareholders, according to the latest monthly newsletter released by B3.
Despite the success, the recent cryptocurrency market slump has resulted in HASH11’s profitability having reached the lowest levels of profitability since it was launched in April of last year.
On its debut on the stock exchange, B3’s flagship cryptocurrency ETF was quoted at BRL 52.65. On the morning of this Friday the 13th, the fund’s quota is being negotiated for R$ 25.95. Thus, in the last 12 months, B3’s flagship cryptocurrency index fund has depreciated by 50%.
Other popular ETFs among Brazilian investors are BITH11 and QBTC11, fully linked to Bitcoin (BTC), and ETHE11, linked to Ethereum (ETH). All recorded negative variation due to the fall in prices of the two main cryptocurrencies on the market.
Most investors – 83% – opted for flexible options without a central counterparty (CCP) when choosing the type of contract. The issuance of Structured Operations Certificates (COEs) were responsible for 16.8% of the contracts signed, while the swap (a type of derivative) accounted for 0.2% of operations.
As Cointelegraph Brasil recently reported, Hashdex CEO Marcelo Sampaio highlighted that, in the short term, the price action of cryptocurrency ETFs is just “noise”. An investment thesis in cryptocurrencies demands a long-term horizon, justified the executive.
Furthermore, Sampaio believes that within a year, HASH11 will be B3’s most traded ETF since it currently belongs to IVVB11, which replicates the S&P 500 index and has more than 180,000 investors.